IREDA Approved Rs 5000 Crore Fund Raise Via QIP- Details

The board of the Indian Renewable Energy Development Agency ( IREDA ) Ltd has approved a qualified institutional placement to raise up to Rs 5,000 crore. The decision was reached at the state-owned company's board meeting on Thursday.

As per exchange filing, IREDA stated, “Board of the Company, at its meeting held today, i.e., Thursday, January 23, 2025, has considered and approved the raising of funds by issue of equity shares through a qualified institutions placement (QIP), in one or more tranches, under applicable laws, for an amount aggregating up to ₹5,000 crore.”

IREDA: QIP Details

The corporation also stated that the government's stake sale in the QIP will not exceed 7% of its 75% ownership in the company. 

“The shareholding of the President of India, acting through the Ministry of New and Renewable Energy, Government of India, does not dilute more than 7% of the post-issue paid-up equity share capital of the Company, and subject to the receipt of approval of the shareholders of the Company,” as per filing added.

IREDA: Q3 Results

IREDA's most recent quarterly update showed a 27% YoY growth in net profit, reaching Rs 425 crore, while total revenue from operations increased 36% YoY to Rs 1,698 crore. Net interest income increased by 39 percent year on year to Rs 622 crore, while operating margins fell by 330 basis points to 30.4 percent in Q3FY25.

The state-owned NBFC also improved asset quality, with gross non-performing assets (NPAs) falling to 2.68 percent in the December quarter, compared to 2.90 percent in the same period previous year. Over the last three months, IREDA shares have fallen more than 11 percent, compared to a 4 percent dip in the benchmark Nifty 50 index.
 

Also Read: Reliance Industries To Invest 3 Crore In Maharashtra- Details